Another U.S. bank from the top 20 has problems

Another American bank faced financial problems - capitalization of First Republic Bank, one of the twenty largest banks in the U.S. in terms of assets, by Wednesday evening had fallen by more than 60%. During the first hours of trading, its shares fell to a historical minimum of $6.38; since the beginning of the year they have lost more than 90% of their value.

The collapse began on Tuesday in response to the bank's release of its first-quarter results and found that its deposit outflow exceeded $100 billion when depositors began withdrawing money en masse from banks following the U.S. bankruptcy in March. At First Republic, customer deposits fell 40 percent to $104.5 billion, according to the report. This was well below analysts' forecasts that expected it to be $137 billion.

After the March crash, leaders of the U.S. banking sector urgently allocated cash to save smaller banks from the outflow of deposits, but it seems that this could not save First Republic, writes profinance.ru. Now, according to Forbes, it needs funds from outside to continue to exist. The situation points to the vulnerability of the U.S. banking system, which instills fear in the players.